The 10-second takeaway
For the quarter ended March 31 (Q2), Tetra Tech crushed expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased.
Gross margins dropped, operating margins dropped, net margins increased.
Tetra Tech notched revenue of $642.0 million. The 12 analysts polled by S&P Capital IQ foresaw sales of $532.4 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $476.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.38 for Q2 were 8.6% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.2%, much worse than the prior-year quarter. Operating margin was 7.2%, 30 basis points worse than the prior-year quarter. Net margin was 4.8%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $566.4 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $2.20 billion. The average EPS estimate is $1.70.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 391 members out of 402 rating the stock outperform, and 11 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give Tetra Tech a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tetra Tech is outperform, with an average price target of $33.67.
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